The average rate of residential properties in Pune touched an all-time high of Rs 6,590 per square feet, rising 11 per cent annually in 2024, according to a report by Gera Developments.
In its bi-annual report on the Pune residential sector, real estate company Gera Developments Pvt Ltd pointed out that sales declined by 5 per cent in the 2024 calendar year to 90,127 units.
“The rise in home prices continued for a 5th consecutive year. On an already increased base, the average rate across the city increased by 10.98 per cent to an all-time high of Rs 6,590 per square feet,” the report said.
Sales have dropped from 1.03 lakh homes in 2022 to about 94,500 homes in 2023 and further down to around 90,000 homes in 2024, the report said.
New launches have also come down to 91,400 units in 2024 from 96,350 units in the preceding year. In 2022, 1.03 lakh new homes were added.
“Pune’s real estate market reflects the dynamics of a classic boom cycle that began in 2020, with prices steadily climbing by 40 per cent over the past five years. While the sector remains robust, the tapering of sales in 2023 & 2024 signals the need for cautious optimism,” Rohit Gera, Managing Director of Gera Developments, said.
A drop in home sales seems to indicate a resistance at current price levels, he added.
“The reduction in the new inventory added to the market by developers seems to have kept the market in a stable state. Developers must prioritise a balanced approach to supply and pricing to ensure market stability,” Rohit advised.
Commenting on the report, Garvit Tiwari, Director & Co-Founder of real estate consultant InfraMantra, said, “The decline in housing sales and rise in property prices is a phenomenon that has been seen across top cities in 2024, including Pune owing to the high base effect. The demand for bigger homes and rise in raw material prices have driven up the prices.” Pune is becoming a hub for corporate activity that has been driving the demand for homes, he said.
“Affordability and massive infrastructure development towards ensuring easy connectivity are factors that are influencing home-buying decisions,” Tiwari said.